Construction slowdown continues in Vail
Vail, CO Colorado
VAIL, Colorado – The slowdown in construction activity continued during the second quarter of 2009 compared to development activity in 2008, according to statistics from the Town of Vail Community Development Department. As expected, the figures show a continuation of the construction slowdown that began during the last three months of 2008 following five consecutive years of record-breaking activity.
The town issued 253 building permits during the second quarter of 2009, or 120 fewer permits than the same period in 2008. For the first half of the year, 372 permits were issued compared to 517 permits for the first half of 2008, a decrease of 28 percent.
The number of building inspections for the first six months of 2009 totaled1,293 and is projected to end the year with approximately 3,250 inspections. That compares with 8,219 inspections that took place during 2008.
Even more significant is a decrease in the valuation of the construction projects with permits totaling just $16.3 million for the second quarter of 2009 compared with $80.7 million for the same period last year. Year-to-date valuations total $21.1 million for the first six months of the year compared to $100.5 million in 2008, a 79 percent decrease.
The current building activity is tracking more closely with 1997-98 development figures with remodels and other smaller projects that are more indicative of Vail’s growth pattern prior to the record redevelopment years, according to Community Development Director George Ruther.
Building fee collections also are down from 2008 figures. The town collected $493,000 during the second quarter this year compared to $1.4 million during the same time last year. This brings total collections for the first half of the year to $868,000 compared to $1.82 million during the same period last year, representing a 52 percent decrease. —
Building fees account for 3.7 percent of the town’s budgeted revenues, estimated at $44.3 million for 2009. The town has begun a budget review process that aims to reduce general operating expenses by another 5 percent by 2011 to operate within projected annual revenues.-Reductions totaling $2.9 million (or 9 percent) have already been implemented during 2009.
The highest year for construction in Vail was set in 2007 with $496 million in permit valuations. In 2008, the department processed 1,180 building permits, exceeding $308 million in valuation, representing the third highest year for construction. The second highest year occurred in 2006, with 1,136 permits and a valuation exceeding $355 million.
For details on the development activity, contact Ruther at 479-2145, or for information on the budget process, contact Kathleen Halloran, manager of budgets and financial reporting, at 479-2116.